La. Admin. Code tit. 7 § XXXI-301

Current through Register Vol. 50, No. 9, September 20, 2024
Section XXXI-301 - Definitions

A. Wherever in these rules and regulations the masculine is used, it includes the feminine and vice versa; wherever the singular is used, it includes the plural and vice versa.

Act-R.S. 3:4101 et seq., the Dairy Stabilization Law.

Administrative Cost-includes those direct additional expenses normally and customarily associated with the placement of a product into an established accounting system such as clerical assistance and computer related expenses and does not include expenses such as marketing, sales or promotional expenses.

Agent-an employee of the Department of Agriculture and Forestry or any person authorized to act on behalf of the commissioner.

Board-the Dairy Stabilization Board created by R.S. 3:4106.

Bulk Milk-milk which has not yet been placed in the container in which the product will be offered for sale to consumers, retailers, or institutions.

Cartage-the transportation of dairy products within a limited geographicia area, such as delivery of dairy products from the processor to the retailer or distributor.

Commerce-any act for which a license from the board is required.

Commissioner-the commissioner of Agriculture and Forestry of the state of Louisiana.

Cost-

a.Cost to the Retailer-the per unit invoice cost of the dairy products to the retailer:

i. less the volume discount, if any;

ii. plus, all costs of freight;

iii. plus, a markup to cover a proportionate part of the cost of doing business, direct and indirect, which markup, in the absence of proof of a different cost, shall be no less than 6 percent of the invoice cost to the retailer after adding freight charges;

b.Cost to the Distributor-the per unit invoice cost of the dairy products to the distributor, including:

i. all freight charges not otherwise included in the invoice which shall, in the absence of proof of a different amount, be presumed to be 6 percent of the invoice cost for inbound freight and 12 percent of the invoice cost for outbound freight as applicable; and

ii. a markup to cover a proportionate part of the cost of doing business, direct and indirect, which markup, in the absence of proof of a different cost, shall be presumed to be no less than 3 percent of the invoice cost;

c.Cost to the Processor-all the cost including the costs of raw products, ingredients and/or additives, labor (including salaries of executives and officers), receiving, cooling, processing, packaging, manufacturing, rent, interest, depreciation, power, supplies, selling, delivery, storing, maintenance of plant and equipment, advertising, transportation, all types of licenses, taxes, fees, insurance, any and all overhead expenses, and all other costs, direct and indirect, of doing business. Cost shall be allocated proportionately to each unit of product produced;

d. to determine cost when one or more items are advertised, offered for sale, or sold with one or more other items at a combined price, or are advertised, offered as a gift, or given with the sale of one or more items, then all of the items shall be considered as advertised, offered for sale, or sold, and the cost and price of each item shall be governed by the provisions of §301Cost.a, b, and c, and other related provisions hereof.

Delinquent Account-the unpaid debt resulting from the purchase of dairy products on credit after the passage of 30 days from the end of the month in which the purchase was made.

Department-the Department of Agriculture and Forestry of the state of Louisiana.

Discount-any reduction, direct or indirect, in the price of dairy products.

Disruptive Trade Practice-any of the acts more fully defined in §317 hereof.

Distributor-a person, other than a processor, who sells dairy products to one or more retail establishments or home delivery routes. The term distributor includes wholesale grocers, cooperative grocery associations, and any person engaged in marketing dairy products at wholesale (the sale of goods in bulk or quantity as opposed to retail or direct sales to consumers).

Fluid Milk-homogenized milk, creamline milk, lowfat milk, fortified lowfat milk, skim milk, buttermilk, flavored milk, chocolate milk, lowfat chocolate milk, ice milk mix, half and half, breakfast cream, whipping cream, egg nog, sour cream, cottage cheese (dry or cream), creole cream cheese, yogurt, U.H.T. milk, reene, and lo-reene.

Freight-all cost of transportation of dairy products such as delivery of products to and from the retailer or distributor.

Frozen Dessert(s)-frozen dairy products including ice cream, fruit ice cream, nut ice cream, frozen yogurt, ice milk, malt ice milk, malt ice cream, French ice cream, milk sherbets, mellorine, olarine, sherine and the mix from which any such product is made.

Illicit Payment-the payment of anything of value by a processor or distributor or any agent of either for the privilege of doing business or with the intent or effect of influencing the recipient in a business relationship.

Institution-a school, hospital, state agency, religious organization, charitable organization, or nursing home.

Invoice-the document evidencing the sale of products which shall contain sales information including the date, quantity, description of product and the actual sale price of each product to the purchaser.

Licensee-any person licensed or required to be licensed under the Act or these rules and regulations.

Market Area-that geographic territory in which a licensee departing from a prevailing price under the circumstances described in §323. A.2.a.i or §323. B.2.b i, actively competes for customers with the relevant competitor and where the relevant competitor is offering the price being met or that geographic territory in which consumers of the licensee's dairy products actively shop for dairy products of the licensee and the relevant competitor and where the relevant competitor is offering the price being met.

Markup-an amount added to the invoice or replacement cost of dairy products to establish a reasonable sales price.

Milk-the lacteal secretion of one or more cows (including such secretions when raw, cooled, pasteurized, standardized, homogenized, recombined, or concentrated) which meets applicable requirements of the state health officer.

Milk Case(s)-the wood, metal, or plastic container utilized for transportation and/or delivering cartons, bottles, jugs, or other packages of dairy products.

Person-any licensee, individual, partnership, corporation, cooperative association, governmental agency, or any entity.

Price-the net amount received or to be received by the seller in legal United States currency and currency specifically does not include trading stamps.

Processor-a person who processes one or more dairy products or a person who purchases bulk milk for resale to a person who processes dairy products. The term does not include a person who purchases ice cream mix or ice milk mix whose processing activities are limited to converting such mix into a dairy product which will be sold on the premises where such processing occurs.

Quorum-with respect to the board, four members of the board.

Retailer-any person who is engaged in transferring title to daily products to consumers at a fixed business location within the state.

Slotting Allowance-the payment of anything of value by a supplier as a mere reimbursement for actual, real and genuine additional direct administrative cost incurred by a purchaser in servicing the physical introduction of a product or products. Slotting allowance does not mean, under any circumstances, any payment which may be construed as an illicit payment as defined herein.

Supplier-processors and distributors, including wholesale grocers and cooperative grocery associations.

Volume Discount-a rate of reduction applicable to the price of dairy products, which rate is established on the basis of total purchases of dairy products from all suppliers of such products.

Volume Discount Year-the 12 months commencing on April 1 and ending on March 31.

Wholesaler-any licensee engaged in the business of making sales at wholesale (the sale of dairy products in bulk or quantity as opposed to retail or direct sales to consumers) within this state, or if any person is engaged in the business of making sales at both wholesale and at retail, wholesaler shall apply only to the wholesale portion of the business.

La. Admin. Code tit. 7, § XXXI-301

Promulgated by the Department of Agriculture, Dairy Stabilization Board, LR 9:3 (January 1983), amended LR 20:398 (April 1994).
AUTHORITY NOTE: Promulgated in accordance with R.S. 3:4102 and 3:4108 (formerly R.S. 40:931.2 and R.S. 40:931.8).